Jan/100
Debt collectors 1st Credit restrained by OFT
Debt collection firm 1st Credit Ltd has been made by the Office of Fair Trading to clean up its act. Following an investigation by the OFT it concluded that 1st Credit “failed to meet satisfactory standards”. The OFT laid down guidelines which 1st Credit must comply, these include to;
refrain from issuing statutory demands warning of bankruptcy where it is unlikely that proceedings will be initiated;
not discuss legal action with consumers unless it is likely that such action will be taken;
ensure that sensitive cases involving vulnerable individuals, for example those with mental health or medical problems, are dealt with appropriately;
ensure that all matters of concern raised with them by the free advice sector and other third parties are dealt with appropriately.
This is a positive step for those indivuduals who feel bullied by companies such as 1st credt, who often use Statutory demands to scare debtors into paying off debts which in the long run may place them in a worse financial position.
Dec/090
I have Just received a Statutory Demand, what CAN I do?
Do not ignore it. Don’t throw it away!
You need to act quickly (You have 18 days to deal with it)!
You can remedy this situation (if the debt is disputed)
A Statutory Demand is a formal legal document requiring you to pay off an outstanding debt either by instalments or a lump sum or to secure it against a property.
If you do not comply with the demand, the creditor may be able to apply for bankruptcy against you within 21 days.
Some creditors use a Statutory Demand as a tactic to frighten you but they should always be taken seriously. A Statutory Demand issued by the HM Customs and Revenues should be regarded as serious.
I need further help
Please do not hesitate to contact dominiccooper@kpsolicitors.com or call 01744 636000 he will be able to assist you on these matters.
Is it possible to deal with this myself?
If you want to deal with this on your own, you should apply within 18 days to your local County Court to “set aside” the Statutory Demand under any of the following circumstances:
You dispute amount of money owed
You can pay the debt
You have a counterclaim of more than the money owed
You owe less than £750
The demand is in error
The Statutory Demand must be complied with to prevent any further action being taken against you.
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